Sundance Energy (SEA)

Sundance Energy
shares have climbed to their highest since April 2011, aided by positive drilling results from its acquisition target, Texon Petroleum. Texon, which is due to be taken over by Sundance next month in a $100 million scrip-based deal, last week reported flow rates from its latest two wells in the Eagle Ford shale region of Texas, including one that set two records: it flowed at over 2000 barrels of oil equivalent per day and was drilled and completed for less than $US9 million. Sundance is seen to be in a good position to continue growth in the Eagle Ford as it is armed with $US163 million rom the sale of its South Antelope asset in the Bakken shale, Wilson HTM analyst John Young notes. Merrill Lynch says Sundance has a track record of using cash to create value, having reaped more than $US230 million from five asset sales in the past five years, driving a 75 per cent rate of return on investments in unconventional plays.